Buckeye Technologies, a US owned maker of absorbent paper will close its factory in Cork with the loss of 90 jobs.
The facility produces absorbent paper using airlaid nonwoven technology. The paper is is used in personal hygiene products and household wipes.
The company said the decision to close the factory was due to excess capacity in the airlaid absorbent materials and high unit costs.
Mr Gavin O'Neill, managing director of Buckeye in Cork said that while the company has tried to diversify with new products, the Cork factory has been operating at 66 per cent capacity for the last number of years which is not sufficient to be a viable operation.
He stressed that the Cork site had consistently performed to the highest standards and paid tribute to the capability, dedication and flexibility of the Cork employees.
As a result of the market conditions Buckeye has been forced to close smaller facilities with production now focused on bigger facilities in Germany and North America.
The company will incur restructuring costs of approximately $3 million.
Additionally, the company will include a non-cash asset impairment charge relating to the Cork facility of about $27 million after tax in its March financial results.